QUESTION 6 Refer to the following information in order to answer Problems #6, #7, #8 The...

 

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QUESTION 6 Refer to the following information in order to answer Problems #6, #7, #8 The par value is $1,000.00 THe bond price is $895.00 The coupon rate is 9.60% Time to maturity is 2 years Probability of default is 30% Recovery rate is 35% DETERMINE THE YTM ON THE IBM BOND USING GOAL SEEK. a. YTM 18.05% b. YTM 16.15% c. YTM = 15.16% d. YTM 17.16% QUESTION 6 Refer to the following information in order to answer Problems #6, #7, #8 The par value is $1,000.00 THe bond price is $895.00 The coupon rate is 9.60% Time to maturity is 2 years Probability of default is 30% Recovery rate is 35% DETERMINE THE YTM ON THE IBM BOND USING GOAL SEEK. a. YTM 18.05% b. YTM 16.15% c. YTM = 15.16% d. YTM 17.16%

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